Cabot Oil & Gas Corporation Clarifies Marcellus Prices

Cabot Oil & Gas Corporation

today announced that in the fourth quarter of 2011 the Company realized over $3.90 per Mcf for its Marcellus gas in Northeast Pennsylvania. This price is the result of the market price for the gas that averaged approximately $3.18 per Mcf and the hedged gas price of over $5.17 per Mcf, which covered 215 Mmcf per day of production. For January, the market price for the gas sold is approximately $3.00 per Mcf, and when combined with hedges covering about half of the daily volumes at $5.20 per Mcf, the overall Marcellus realization is in excess of $4.00 per Mcf. January is the first month for deliveries to Transco that includes sales of over 200 Mmcf per day at pricing that exceeds traditional Tennessee Gas pricing. This will help temper negative swings in price for Cabot's Marcellus.